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Changes to Legal Requirements Relating to HMO's
19 04 2010
The Government has amended the Town and Country Planning (Use Classes) Order 1987 by introducing a new separate planning class for a House in Multiple Occupation (HMO), the new class will replicate the definition in s254 of the Housing Act 2004 and require all landlords of HMO properties to get planning permission. This came into force on the 6th of April 2010.
1. What is an HMO?
In general terms, a HMO would be a property (or part of a property e.g. a flat) occupied by three or more persons forming more than one household. Examples include houses that have been converted into shared houses, bedsits, student accommodation and bed and breakfasts.
2. Will the changes be applied retrospectively?
The changes only apply to properties to be let by three or more persons on or after the 6th of April 2010. In these cases, landlords should seek advance planning permission from their local authorities before letting their property. Landlords should note that any existing tenancy which is renewed after 6th of April 2010 would also need planning permission.
3. Objectives
By requiring planning permission, local authorities will be given the opportunity to control the spread of high concentrations of HMOs in any given area and create well-balanced communities. This will be achieved through adopting a local policy to measure the applications against. In effect, this will control the negative effects associated with HMOs such as noise, studentification, parking, substandard accommodations and littering.
4. The impact
Although the changes are intended to achieve the above objectives, they are heavily criticised for a bigger impact they are likely to have. The additional costs, time and fees involved in making applications for planning permission may deter landlords from letting HMOs, this will in turn result in fewer affordable HMOs being offered to students and other persons with restricted means. However, with less HMOs being made available, landlords who successfully apply may enjoy higher rents.
Our Landlord & Tenant department are able to advise on all aspects of the new changes in legislation. Please ask for further details if required. The above is intended to be a summary only and is not to be relied upon without further specific advise.